Quote:
Originally Posted by steve B
That's somewhat common in live auctions. When I worked for the car dealer we sold most of the tradeins through an auction and nearly every one had a reserve. That reserve was seldom announced. Once bidding ended they'd usually just say "sold" or "sorry too low". Rarely if a buyer was close the auctioneer might tell them how close they were. But that was unusual. The seller was on the podium with the auctioneer, and could lower the reserve if they wanted to.
I'll also say that the auto auction let me see all manner of shenanigans with bidding. Shills, known or unknown - Yep, saw a guy bid up his friends car witout his friends knowledge. "Bids" that didn't have an actual bidder. A bidder who won and literally ran off and left before they could figure out who it was. A sort of reverse shill on a car with problems- 1000 and over the car could be returned, and there was a very quick hammer at 950. If it wasn't dealers only there'd have been a lot of trouble. (Car dealers don't often get much sympathy in court)
Steve B
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Very interesting Steve. I spoke with a guy who works for a very large car dealership out here that buys and sells used cars awhile back. The used cars they sell are very nice, in fact, they almost all look new.
I asked him why that was- he said they do buy cars that they don't put on the lot, if they don't quite meet their standards (dings, too many miles, etc.)-he said they send those cars off to be auctioned (to other used car dealers mostly, but also open to the public).
I asked him how they guarantee that they won't lose money, and he said they start the bid at what they paid for the car. I asked "what if the highest bid is only the first bid-what you paid for the car?" and he said that even if that happens on every car that they still make money off of the fees to enter the auction and the fees to bid....so even if every car only sold for what they paid for it, they still make decent money from the fees.
Back on topic (sorry)....so the CU board wipes out whole threads? Wow.
Sincerely, Clayton